Sony Honda Mobility Unveils New Prototype EV at CES in Las Vegas

Sony Honda Mobility unveiled its new prototype electric vehicle, the Afeela Prototype 2026, at the CES trade show in Las Vegas on January 5, 2026. The joint venture between Sony Group and Honda Motor aims to deliver a new model based on this prototype to U.S. customers as early as 2028. This announcement came as many U.S. automakers scaled back their EV plans due to weakening demand and policy shifts.

The Afeela 1, the company's first EV, is expected to begin deliveries to customers in California late this year. Priced from $89,900, it was introduced in 2025 and is currently in trial production at Honda's East Liberty Auto Plant in Ohio. The joint venture was formed in 2022 to leverage Sony's software and gaming expertise alongside Honda's engineering and vehicle-building capabilities.

The Afeela Prototype 2026, introduced at CES 2026, builds upon the Afeela 1 but introduces greater spatial flexibility and accessibility, aiming to appeal to a broader audience. A production model based on this design is planned for launch in the U.S. market by 2028.

Why Did This Happen?

The unveiling of the Afeela Prototype 2026 occurred against a backdrop of reduced U.S. automaker investment in new EV models. Many have paused or canceled production due to weakening EV demand and the Trump administration's removal of a $7,500 tax credit. Despite these challenges, Sony Honda Mobility remains committed to its long-term EV strategy, focusing on a combination of high-performance hardware and advanced software to redefine the driving experience.

Sony Honda CEO Yasuhide Mizuno stated that the joint venture's goal is to create an EV that functions as a 'Creative Entertainment Space.' This includes integrating Sony's entertainment ecosystem with autonomous driving and AI features to deliver a unique in-cabin experience.

How Markets Reacted

The Afeela 1 is entering a competitive premium EV market. At a starting price of $89,900, it will face strong competition from established luxury brands and new entrants. However, the Afeela 1's deep integration with Sony's digital ecosystem could give it a unique edge.

Despite the broader EV market challenges, the Afeela 1 has already attracted significant interest. SHM has opened AFEELA Studio showrooms, welcoming more than 100,000 visitors and conducting over 24,000 in-vehicle demonstrations in its first year. The company is also planning to expand deliveries to Arizona in 2027 and to Japan in early 2027.

What Are Analysts Watching Next?

Analysts are closely monitoring how the Afeela 1 will perform in a market where EV demand has cooled. The success of the vehicle will depend on whether its entertainment-first proposition resonates with buyers over more traditional luxury EV features.

SHM's long-term vision includes the development of an open, on-chain mobility service platform leveraging token-based incentives and further integration of AI and autonomous driving technologies. This strategy could redefine the future of personal mobility.

Additionally, the company has announced a phased experiential program called AFEELA Advanced Access for early reservation holders. Demo drives are planned for late 2026, allowing potential customers to experience the vehicle's features firsthand.

Future Sales Expansion Plans

The Afeela 1 will be delivered in California first, with plans to expand to Arizona in 2027. Japanese customers can expect deliveries to begin in early 2027. SHM is also planning to open "AFEELA Studio and Delivery Hubs" in Torrance and Fremont, California, to provide a full brand experience and streamline the delivery process.

The joint venture has also outlined a long-term roadmap that includes the development of new models and the continued enhancement of AFEELA Intelligent Drive, an advanced driver assistance system that is evolving into an end-to-end AI model. This system is designed to understand user preferences and emotions, maximizing the value of space and time during mobility.

The success of the Afeela 1 and the Afeela Prototype 2026 will depend on how well Sony Honda Mobility can execute its vision of combining entertainment, AI, and autonomous driving. The company is positioning itself not just as a carmaker, but as a leader in the next generation of mobility solutions.

As the automotive industry continues to shift toward electrification and digital integration, the Afeela 1 represents a bold step forward. Whether it will succeed in a challenging market remains to be seen, but the joint venture's focus on innovation and user experience could set it apart from the competition.